delivered the opinion of the court:
Plaintiffs, subscribers of defendant MCI’s long-distance telephone service, brought these class action suits in the circuit court of Cook County alleging that certain advertisements, which described defendant’s service charges, violate the Consumer Fraud and Deceptive Business Practices Act (Ill. Rev. Stat. 1983, ch. 121½, par. 261 et seq.) and the Uniform Deceptive Trade Practices Act (Ill. Rev. Stat. 1983, ch. 121½, par. 311 et seq.). Plaintiffs also allege that defendant’s advertising practices constitute a breach of contract and common law fraud. They seek damages and an accounting for themselves and other persons similarly situated.
After the cases were consolidated by the trial court, defendant moved to dismiss the actions, contending that the State-law claims are preempted by the Federal Communications Act of 1934 (Communications Act) (47 U.S.C. sec. 151 et seq. (1982)). Alternatively it requested that the court stay the actions and refer plaintiffs' claims to the Federal Communications Commission (FCC) based on the doctrine of primary jurisdiction, or stay the actions, pursuant to section 2 — 619(a)(3) of the Code of Civil Procedure (Ill. Rev. Stat. 1983, ch. 110, par. 2—619(a)(3)). The trial court denied defendant’s motion to dismiss or stay the actions. It also refused defendant’s request to certify the preemption issue for interlocutory appeal. (See 87 Ill. 2d R. 308.) Thereafter, defendant appealed the denial of the stay. (87 Ill. 2d R. 307.) The appellate court, in addition to affirming the denial of the stay, determined that it had jurisdiction to consider the preemption issue even though the trial court had not certified the issue for interlocutory review. The appellate court held that plaintiffs’ State-law claims are not preempted by the Communications Act. (
Defendant’s principal contention is that plaintiffs’ claims are preempted by the Communications Act (47 U.S.C. sec. 151 et seq. (1982)). Defendant asserts that the “comprehensive nature” of the Communications Act demonstrates that Congress “intended to occupy the entire field of interstate long distance telephone service.” It argues that the conduct challenged by plaintiffs is “at the center of the occupied field” and that, therefore, plaintiffs’ State-law claims are preempted. Plaintiffs contend, however, that their actions are not preempted, asserting that the only conduct being challenged is defendant’s advertising practices and not the manner in which it provides interstate telephone service. Defendant raises two alternative arguments as to why this court should either dismiss or stay these actions. First, it contends that under the doctrine of primary jurisdiction the actions should be stayed and plaintiffs’ claims referred to the FCC. Additionally, defendant requests that the suits be stayed pursuant to section 2 — 619(a)(3) of the Code of Civil Procedure (Ill. Rev. Stat. 1983, ch. 110, par. 2—619(a)(3)), asserting that there is a Federal action pending which involves the same parties and same cause.
The record shows that plaintiffs originally brought four separate actions against defendant in the circuit court. Three of the actions, filed by plaintiffs S. Keller-man, Bernard Turovitz and Louis T. Davis & Associates, Inc. (Davis), were consolidated by the trial court for all purposes. The action brought by Phyllis Hesse was consolidated with the other actions for pretrial purposes only. The allegations contained in all four complaints are substantially similar in that they attack certain of defendant’s advertisements and promotional material as fraudulent and deceptive.
The advertisements and promotional material in question compare the cost of defendant’s long-distance telephone service with the cost of a service provided by a competitor, American Telephone & Telegraph Company (AT&T). Plaintiffs allege that in order to induce them to purchase its service, defendant disseminated certain advertisements and promotional materials through various media which claimed that “although its rates are substantially lower” than AT&T’s, “its billing practices and procedures were identical to those of” AT&T. They allege that AT&T charges its customers only for completed calls and no charge is made to customers for calls which are initiated but not completed, i.e., where the recipient does not answer or the caller terminates the call before it is answered. In contrast, plaintiffs allege that defendant has billed its customers for uncompleted calls.
Plaintiffs further allege that it was defendant’s practice to impose a surcharge in situations where the telephone rang six or more times before it was answered — a charge not customarily imposed in the industry. It also is alleged that every time customers used defendant’s service they paid a local telephone' charge which AT&T customers did not have to pay. Plaintiffs do not challenge the reasonableness of the additional charges imposed by defendant, but only the fact that its advertising did not disclose that the additional charges would be made. It is alleged that through these advertisements and promotions, defendant “engaged in a course of conduct to falsely represent to the plaintiff[s] and the general public that its practice and policy [were] *** to bill its customers only for the actual time of communication during completed long distance calls” when in fact its practice was to bill its customers for uncompleted calls and to impose a surcharge when a telephone rang six or more times before it was answered. Plaintiffs allege that defendant’s conduct constitutes common law fraud, a breach of contract, and that it violates the Uniform Deceptive Trade Practices Act (Ill. Rev. Stat. 1983, ch. 121½, par. 311 et seq.) and the Consumer Fraud and Deceptive Business Practices Act (Ill. Rev. Stat. 1983, ch. 121½, par. 261 et seq.).
Before proceeding with the issues raised by defendant, we find it necessary to determine whether the preemption issue is properly before this court. Plaintiffs Kellerman, Turovitz and Davis contend that since the trial court refused to certify the preemption question for interlocutory appeal in accordance with Supreme Court Rule 308 (87 Ill. 2d R. 308), the appellate court did not have jurisdiction to consider it. As such, they assert that the issue is not properly before this court.
The appellate court, relying on this court’s decision in May Department Stores Co. v. Teamsters Union Local No. 743, (1976),
After reviewing the record in the present case in light of May, we believe that the appellate court was correct in finding that it had jurisdiction to address the preemption issue. Defendant’s Federal preemption argument brings into issue the authority of the trial court to enter the order appealed from and, thus, the argument is properly considered on interlocutory appeal. Therefore, we will consider defendant’s argument that plaintiffs’ State-law actions are preempted by the Communications Act.
The preemption doctrine, which has its origin in the supremacy clause of the Federal Constitution (U.S. Const., art. VI, cl. 2), provides that Federal law will in some instances override or preempt State laws on the same subject. (Rice v. Santa Fe Elevator Corp. (1947),
Although there is no “rigid formula or rule which can be used” to determine if Congress intended Federal law to preempt plaintiffs’ actions for fraud, deceptive advertising and breach of contract (Hines v. Davidowitz (1941),
“Absent explicit pre-emptive language, Congress’ intent to supersede state law altogether may be inferred because ‘[t]he scheme of federal regulation may be so pervasive as to make reasonable the inference that Congress left no room for the States to supplement it,’ because ‘the Act of Congress may touch a field in which the federal interest is so dominant that the federal system will be assumed to preclude enforcement of state laws on the same subject,’ or because ‘the object sought to be obtained by federal law and the character of obligations imposed by it may reveal the same purpose.’ [Citation.]
Even where Congress has not completely displaced state regulation in a specific area, State law is nullified to the extent that it actually conflicts with federal law. Such a conflict arises when ‘compliance with both federal and state regulations is a physical impossibility,’ [citation] or when state law ‘stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress’ ***.” Fidelity Federal Savings & Loan Association v. De la Cuesta (1982),458 U.S. 141 , 153,73 L. Ed. 2d 664 , 675,102 S. Ct. 3014 , 3022.
The express purpose of the Communications Act (47 U.S.C. sec. 151 et seq.(1982)) is to “make available, so far as possible, to all the people of the United States a rapid, efficient *** communication service with adequate facilities at reasonable charges.” (47 U.S.C. sec. 151 (1982).) To that end, the Act applies “to all interstate and foreign communication by wire or radio *** and to all persons engaged within the United States in such communication” (47 U.S.C. sec. 152(a) (1982)), and provides that an interstate telephone carrier’s “charges, practices, classifications, and regulations for and in connection with [its] communication service, shall be just and reasonable.” (47 U.S.C. sec. 201(b) (1982).) Under section 206, any carrier which violates a provision of the Act is liable “to the person or persons injured thereby for the full amount of damages sustained in consequence of any such violation.” (47 U.S.C. sec. 206 (1982).) An injured party may file a complaint against the carrier with the FCC (47 U.S.C. sec. 207 (1982)), which has the power “to investigate the matters complained of” (47 U.S.C. sec. 208 (1982)), and to award damages when appropriate (47 U.S.C. sec. 209 (1982).) Alternatively, an aggrieved party can file an action against the carrier in Federal district court. 47 U.S.C. sec. 207 (1982).
Defendant essentially makes two arguments as to why plaintiffs’ actions are preempted by the Communications Act. First, it argues that the “comprehensive nature” of the Act, as briefly outlined above, demonstrates that Congress “intended to occupy the entire field of long distance telephone service” to the exclusion of State law. It asserts that the conduct challenged here falls within the broad field of interstate long-distance telephone service, and, hence, is preempted. Defendant’s second argument is much narrower. While conceding for purposes of argument that the Act may not preempt all State regulation of long-distance telephone carriers, it contends that the Act specifically governs a carrier’s “charges, practices and tariffs.” Defendant maintains that plaintiffs, although “artfully emphasizing advertising and state law theories of liability,” in reality are challenging “FCC-regulated charges, practices and tariffs.” It argues that since plaintiffs are attacking “charges, practices and tariffs” regulated by Federal law, the State-law actions are preempted by the Act.
While we agree with defendant that the Communications Act represents a “broad scheme for the regulation of interstate service by communications carriers” (Ivy Broadcasting Co. v. American Telephone & Telegraph Co. (2d Cir. 1968),
Little guidance can be gleaned from the Communications Act itself, and few cases have discussed Federal preemption with respect to the Act. In Ivy Broadcasting Co. v. American Telephone & Telegraph Co. (2d Cir. 1968),
In Ashley v. Southwestern Bell Telephone Co. (W.D. Tex. 1976),
In interpreting a statutory provision, courts “ ‘will not look merely to a particular clause in which general words may be used, but will take in connection with it the whole statute *** and the objects and policy of the law.’ ” (Stafford v. Briggs (1980),
Defendant argues that plaintiffs, while “artfully” pleading fraud and deceptive-advertising claims, in reality “seek recovery for federally regulated charges.” As such, it asserts that plaintiffs’ actions are preempted by the Act. Although a similar argument has prevailed in at least one Federal district court (see In re Long Distance Telecommunications Litigation (E.D. Mich. 1984),
Alternatively, defendant argues that the doctrine of primary jurisdiction requires these actions to be stayed pending review of the claims by the FCC.
The doctrine of primary jurisdiction is “concerned with promoting proper relationships between the courts and administrative agencies charged with particular regulatory duties.” (United States v. Western Pacific R.R. Co. (1956),
“[I]n cases raising issues of fact not within the conventional experience of judges or cases requiring the exercise of administrative discretion, agencies created by Congress for regulating the subject matter should not be passed over. This is so even though the facts after they have been appraised by specialized competence serve as a premise for legal consequences to be judicially defined. Uniformity and consistency in the regulation of business entrusted to a particular agency are secured, and the limited functions of review by the judiciary are more rationally exercised, by preliminary resort for ascertaining and interpreting the circumstances underlying legal issues to agencies that are better equipped than courts by specialization, by insight gained through experience, and by more flexible procedure.” (342 U.S. 570 , 574-75,96 L. Ed. 576 , 582,72 S. Ct. 492 , 494.)
Thus, under the doctrine a matter should be referred to an administrative agency when it has a specialized or technical expertise that would help resolve the controversy, or when there is a need for uniform administrative standards. (United States v. Western Pacific R.R. Co. (1956),
In Nader, the plaintiff was “bumped” from a flight because the defendant airline, as was the industry custom, had overbooked the flight. Civil Aeronautics Board (CAB) regulations required airlines to offer “denied boarding compensation” to bumped passengers. Instead of accepting the offered compensation, however, the plaintiff brought a common law action in Federal district court, alleging that the airline’s failure to inform him in advance of its overbooking practices constituted a fraudulent misrepresentation. The district court found for the plaintiff, but the court of appeals reversed, holding that the doctrine of primary jurisdiction required referral of the matter to the CAB so that the agency could determine whether the airline’s failure to disclose the overbooking practice was “deceptive” within the meaning of section 411 of the Federal Aviation Act of 1958 (49 U.S.C. sec. 1381 (1970).) The Supreme Court in Nader reversed, concluding that “considerations of uniformity in regulation and of technical expertise do not call for prior reference to the Board.” (
Our review of the above authorities, particularly the Nader case, convinces us that referral of these actions to the FCC is not required by the primary-jurisdiction doctrine. Like the plaintiff in Nader, the plaintiffs here do not contest the reasonableness or lawfulness of defendant’s charges or billing practices, but only seek recovery for defendant’s failure to disclose certain facts. In resolving the dispute it will not be necessary to evaluate “the economics or technology of the regulated industry” (Nader v. Allegheny Airlines, Inc. (1976),
Defendant’s final contention is that the trial court should have stayed these actions pursuant to section 2— 619(a)(3) of the Code of Civil Procedure (Ill. Rev. Stat. 1983, ch. 110, par. 2-619(a)(3).) Section 2-619(a)(3) allows a defendant to move for a dismissal or stay whenever “there is another action pending between the same parties for the same cause.” (Ill. Rev. Stat. 1983, ch. 110, par. 2—619(a)(3).) Defendant claims that a class action suit that is pending in the United States District Court for the Eastern District of Michigan involves the “same cause” and “same parties”.
Section 2 — 619(a)(3) is designed to avoid duplicative litigation and is to be applied to carry out that purpose. (People ex rel. Department of Public Aid v. Santos (1982),
The factors that a court should consider in deciding whether a stay under section 2 — 619(a)(3) is warranted include: comity; the prevention of multiplicity, vexation, and harassment; the likelihood of obtaining complete relief in the foreign jurisdiction; and the res judicata effeet of a foreign judgment in the local forum. (People ex rel. Department of Public Aid v. Santos (1982),
We note that following the trial court’s refusal of defendant’s section 2 — 619(a)(3) motion, the plaintiffs in the Federal case pending in Michigan filed a consolidated complaint. The Federal district court subsequently dismissed the Federal common law claims and referred the remaining claims, based on the Communications Act, to the FCC. (In re Long Distance Telecommunication Litigation (E.D. Mich. 1985),
For the reasons stated, the judgment of the appellate court is affirmed.
Judgment affirmed.
JUSTICE SIMON took no part in the consideration or decision of this case.
